Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective May 29, 2025, HB5061 fundamentally alters the risk landscape for all state contractors by criminalizing specific surveillance and lobbying tactics. The law pierces the corporate veil, meaning a violation by a subcontractor or affiliate can result in a $2 million fine and 15-year to permanent debarment for the parent company. This is an immediate operational threat requiring a total audit of government relations and business intelligence practices.
Rep. Jeff Leach·House Bill·Regular Session
Comptroller of Public Accounts (Distribution of Debarment Lists) • State Auditor's Office (Primary Oversight) • Texas Ethics Commission (Collaborative Oversight) • Texas Rangers Division of DPS (Criminal Investigations)
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-05-29). Review with your legal and compliance teams to understand implications.
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about HB5061
Effective May 29, 2025, HB5061 fundamentally alters the risk landscape for all state contractors by criminalizing specific surveillance and lobbying tactics. The law pierces the corporate veil, meaning a violation by a subcontractor or affiliate can result in a $2 million fine and 15-year to permanent debarment for the parent company. This is an immediate operational threat requiring a total audit of government relations and business intelligence practices.
HB5061 was authored by Texas Representative Jeff Leach during the Regular Session.
HB5061 was signed into law by Governor Greg Abbott on May 29, 2025.
HB5061 is enforced by Comptroller of Public Accounts (Distribution of Debarment Lists), State Auditor's Office (Primary Oversight), Texas Ethics Commission (Collaborative Oversight) and Texas Rangers Division of DPS (Criminal Investigations).
The regulatory priority for HB5061 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB5061 is estimated as "high". This may vary based on industry and implementation requirements.
HB5061 addresses topics including purchasing, purchasing--state, crimes, crimes--against persons and crimes--against persons--general.
Key dates for HB5061: Effective date is 2025-05-29. Rulemaking: Establish and maintain a confidential reporting hotline and online portal for complaints regarding prohibited contractor activities. (Immediate/Operational); Submit the first joint annual report to the Governor and Legislature regarding complaints, investigations, and penalties imposed. (2026-09-01). Consult with legal counsel regardi
HB5061 establishes the following penalties: administrative penalty of Up to $500,000 for First violation of prohibited surveillance, intimidation, or coercion.; administrative penalty of Up to $2,000,000 for First violation involving undue influence or misuse of private/confidential information.; administrative penalty of Up to $1,000,000 for Second or subsequent violation of prohibited surveillance, intimidation, or coercion.. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
